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Channel 4 faces mounting pressure to decamp from London with the Government expected to indicate it favours moving the broadcaster north to help rebalance the economy.

Karen Bradley, the new Culture Secretary, is this week expected to tell David Abraham, the chief executive of Channel 4, that plans will be developed to relocate its headquarters to Birmingham or Manchester.

Senior Whitehall sources said no final decisions had been taken, but that the new Government believed moving Channel 4 could help the creative economy outside the capital.

Fears Ms Bradley and Matt Hancock, the culture minister, could reopen the question of privatisation are understood to be unfounded, however.